City of Las Vegas’ financial picture sees improvement

The city of Las Vegas’ constantly changing financial picture has taken a positive turn, relatively speaking, in what is the first good news the city has had about its budget in nearly three years.

In May of 2009, for example, the city expected five-year shortfalls totaling $200 million, and within a year that projection increased to $270 million.

On Wednesday, though, Finance Director Mark Vincent predicted five-year shortfalls totaling $66 million, which he said the city should be able to absorb without additional drastic cuts.

"It’s not a great picture. It’s not a growth picture," Vincent told members of the City Council. "But it’s starting to feel like we’re stabilizing a bit."

The consolidated sales tax, a big portion of the city’s budget, is actually increasing after years of decline. Those revenues are $201.5 million this year and are expected to increase to $208.6 million next year.

Property taxes, another important city revenue source, continues to decline, while other revenue streams are holding steady. Property taxes brought in $246.6 million in 2011, but will likely drop to around $227.4 million next year.

Labor costs, meanwhile, have been sliced $30 million since 2010 as the city eliminated positions, laid off employees and reached labor concessions with unions.

Wages and benefits cost the city $257.4 million in fiscal 2010, while that number in fiscal 2012 is expected to be $227.4 million.

The city had been expecting large budget shortfalls for the foreseeable future, such as a $47 million gap in the 2012 budget. That shortfall is now expected to be $12.7 million, and Las Vegas expects to end this budget year with reserves of $68.2 million.

"It appears to be healthy enough to absorb those shortfalls going forward," Vincent said. "I’m not uncomfortable with this forecast. This is getting in the range of something that is workable and manageable for us."

Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.